US Property & Casualty Quarterly
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The US P&C industry's performance improved significantly in 1Q18 compared to a year ago. Net income more than doubled, to USD 16.6 billion, from USD 7.6 billion in 1Q17, as premium growth outpaced loss and expense ratio growth, a nearly 50% increase in realized capital gains boosted investment returns, and a large retroactive reinsurance contract in 1Q17 between AIG and National Indemnity that led to a USD 5.6 billion loss reported in "other income" was not repeated. Meanwhile, surplus growth was weighed upon by a jump in statutory dividends and large unrealized capital losses concentrated at two carriers. All in, the industry's ROE of 8.8% was the best in almost three years.